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REVENUE RECOGNITION AND ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGITION AND ALLOWANCE FOR CREDIT LOSSES REVENUE RECOGNITION AND ALLOWANCE FOR CREDIT LOSSES
    DIS

    Net revenues in the Company’s DIS business accounted for over 95% of the Company’s total net revenues for the three and nine months ended September 30, 2020 and 2019 and are primarily comprised of a high volume of relatively low-dollar transactions. The DIS business, which provides clinical testing services and other services, satisfies its performance obligations and recognizes revenues primarily upon completion of the testing process, when results are reported, or when services have been rendered. The Company estimates the amount of consideration it expects to be entitled to receive from customer groups, using the portfolio approach, in exchange for providing services. These estimates include the impact of contractual allowances, including payer denials and price concessions. The portfolios determined using the portfolio approach consist of the following groups of customers: healthcare insurers, government payers (Medicare and Medicaid programs), client payers and patients.

    DS

    The Company’s DS businesses primarily satisfy their performance obligations and recognize revenues when delivery has occurred or services have been rendered.

    The approximate percentage of net revenue by type of customer was as follows:
    
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Healthcare insurers:
Fee-for-service33 %32 %33 %33 %
Capitated2 3 3 3 
Total healthcare insurers35 35 36 36 
Government payers10 15 12 15 
Client payers40 33 37 32 
Patients12 13 12 13 
Total DIS97 96 97 96 
DS3 4 3 4 
Net revenues100 %100 %100 %100 %
    
    The approximate percentage of net accounts receivable by type of customer was as follows:
September 30, 2020December 31, 2019
Healthcare Insurers30 %22 %
Government Payers6 11 
Client Payers48 42 
Patients (including coinsurance and deductible responsibilities)12 20 
Total DIS96 95 
DS4 5 
Net accounts receivable100 %100 %
    Allowance for Credit Losses Policy

    When estimating its allowance for credit losses, the Company pools its trade receivables based on the following customer types: healthcare insurers, government payers, client payers and patients. 

    For the healthcare insurers and government payers, collection of the Company’s net revenues is normally a function of providing the complete and correct billing information within the various filing deadlines, and provided that the Company has billed the payers accurately with complete information prior to the established filing deadline, there has historically been little to no collection risk. 

    Client payers primarily include physicians, hospitals, IDNs, ACOs, employers, other commercial laboratories and institutions for which services are performed on a wholesale basis and are billed based on negotiated fee schedules.  Credit risk and ability to pay are more of a consideration for these payers. 

    With respect to patients, implicit price concessions, which represent differences between amounts billed and the estimated consideration the Company expects to receive from patients, are recognized as a reduction of revenue.  Estimates of implicit price concessions consider historical collection experience (including the period the receivables have been outstanding) and other factors including current market conditions.

    The Company principally estimates the allowance for credit losses by pool based on historical collection experience, the current credit worthiness of the customers, current economic conditions, expectations of future economic conditions and the period that the receivables have been outstanding.  To the extent that any individual payers are identified that have deteriorated in credit quality, the Company removes the customers from their respective pools and establishes allowances based on the individual risk characteristics of such customers.

    Although the Company believes that its estimates for contractual allowances and patient price concessions as well as its allowance for credit losses are appropriate, it is possible that the Company will experience an impact on cash collections as a result of the impact of the COVID-19 pandemic.